beWileyPLUS8 https://edugen.wileyplus.com/edugen/lti/main.uniReturn to BlackboardUSJeter, Advanced Accounting, 6eHelp | System AnnouncementsCALCULAProblem 4-3Perkins Company acquired 100% of Schultz Company on January 1, 2012, for $160,800. On December 31, 2012, the companies prepared the following trial balances:PerkinsSchultzCash$23,700$31,100Inventory106,300101,300Investment in Schultz Company223,900-0-Land109,80092,700Cost of Goods Sold222,70058,000Other Expense39,50041,600Dividends Declared14,5009,900$740,400Total Debits$334,600Accounts Payable$73,600$16,80074,700155,900Common Stock18,10034,600Other Contributed Capital52,40026,200Retained Earnings, 1/1172,600377,100Sales-0-73,000Equity in Subsidiary Income$334,600$740,400Total Credits(b) Prepare a workpaper for the preparation of consolidated financial statements on December 31, 2012. Any difference between the book value of equity acquired and the value implied by thegoodwill. (List items that increase retained earnings first.)Perkins Company and SubsidiaryConsolidated Statements WorkpaperFor the Year Ended December 31, 2012ConsoltEliminating EntriesSchultzPerkinsCr.Dr.CompanyCompany549700Income Statement172600377100Sales14500

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Asked Dec 10, 2019
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Jeter, Advanced Accounting, 6e
Help | System Announcements
CALCULA
Problem 4-3
Perkins Company acquired 100% of Schultz Company on January 1, 2012, for $160,800. On December 31, 2012, the companies prepared the following trial balances:
Perkins
Schultz
Cash
$23,700
$31,100
Inventory
106,300
101,300
Investment in Schultz Company
223,900
-0-
Land
109,800
92,700
Cost of Goods Sold
222,700
58,000
Other Expense
39,500
41,600
Dividends Declared
14,500
9,900
$740,400
Total Debits
$334,600
Accounts Payable
$73,600
$16,800
74,700
155,900
Common Stock
18,100
34,600
Other Contributed Capital
52,400
26,200
Retained Earnings, 1/1
172,600
377,100
Sales
-0-
73,000
Equity in Subsidiary Income
$334,600
$740,400
Total Credits
(b) Prepare a workpaper for the preparation of consolidated financial statements on December 31, 2012. Any difference between the book value of equity acquired and the value implied by the
goodwill. (List items that increase retained earnings first.)
Perkins Company and Subsidiary
Consolidated Statements Workpaper
For the Year Ended December 31, 2012
Consolt
Eliminating Entries
Schultz
Perkins
Cr.
Dr.
Company
Company
549700
Income Statement
172600
377100
Sales
14500
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be WileyPLUS 8 https://edugen.wileyplus.com/edugen/lti/main.uni Return to Blackboard US Jeter, Advanced Accounting, 6e Help | System Announcements CALCULA Problem 4-3 Perkins Company acquired 100% of Schultz Company on January 1, 2012, for $160,800. On December 31, 2012, the companies prepared the following trial balances: Perkins Schultz Cash $23,700 $31,100 Inventory 106,300 101,300 Investment in Schultz Company 223,900 -0- Land 109,800 92,700 Cost of Goods Sold 222,700 58,000 Other Expense 39,500 41,600 Dividends Declared 14,500 9,900 $740,400 Total Debits $334,600 Accounts Payable $73,600 $16,800 74,700 155,900 Common Stock 18,100 34,600 Other Contributed Capital 52,400 26,200 Retained Earnings, 1/1 172,600 377,100 Sales -0- 73,000 Equity in Subsidiary Income $334,600 $740,400 Total Credits (b) Prepare a workpaper for the preparation of consolidated financial statements on December 31, 2012. Any difference between the book value of equity acquired and the value implied by the goodwill. (List items that increase retained earnings first.) Perkins Company and Subsidiary Consolidated Statements Workpaper For the Year Ended December 31, 2012 Consolt Eliminating Entries Schultz Perkins Cr. Dr. Company Company 549700 Income Statement 172600 377100 Sales 14500

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Expert Answer

Step 1

Financial statements: Financial statements are condensed summary of transactions communicated in the form of reports for the purpose of decision making.

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Prepare a work-paper for the preparation of consolida...

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Perkin company and subrilia N Comolidated tatement workpaper For the vear ended December 31,2012 Wark-pa per Eq uiry method Hminating enuies Sehultz Perki Comolidated Dr bahges Comрацу |сощрану Ilscome sorement $ 377,100 S 172,600 $73,000 3430,100|S 172,600 $ 22,700 $ 58,000 S39.500 541.60A $262,200 S 99.600 S 187,9.00 3 73,000 $ 73.000 S 549,700 ISaes 3.000 (1) Equty in subsidary income Totaltevene a) Costof soods ssld 5 349.700 $ 280,700 SL.100 $ 361,800 $ 187,900 Tetalcost and espete Net hneome to retained earning: (s-b) Retained eaming atement Reteined eansings 11 Ferkirs copan Schiz compay Net ncome to retaed sarrng Drdends dec kred Perkes compN Schdrcompay Retaned eamines 12 31 5 26.200 326.200 $ 52,400 51400 3) S187,900 S 73.000 5 73.000 S187.900 $14.500 $14500 se 900) (2 59.900 59.000 5 199,600S 115,500S 125,400 S 199.600 Balane e sheet Eash sventory Teveatment Derece bermeen inplied and book aie $ 23,700 5 31,100 $ 106,300 S 101,300 5 223,900 S S4,800 S 207,600 S 15.600 $15,600 S 202.500 S15.600 S 480,500 S 109,800 S 92,700 Lasd Goodr 3 15,600 S 463,700s 225,100 Total $75,600 S 16 800 S00 400 Accoints pevable Common stock Perkes compa IN Schizcompeey Oter comibuted.capial Ferks couany Schicompery Retaned eamings Total To otma arcompery deidend To elimisa te iete stments in schultr compn $ 155,900 $155,900 $ 74,700 5 74700 5 34,600 534,600 S 18.100 S 18.100 $ 199.600 S 115.500s 125.400 S 163,700 8 225,1U0 S 259,300 S259,300 59.900 S.199.600 S 480.500 B. Io elhmate drance betwaetiied and book vale Conpuation and aocation of dierence between inolied and book aie scqued Non Eetire Parent shere controllang alue siare $ 160,800 $145.200 $15,600 -$15,600 OS160,800 Os145 200 O $ 15.600 o-S 15,600 Purciase pce and mpted value Lass: Book sate ofaguay Goodw Balance

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